American Eagle bring distribution hub to Rowan County

On Friday, Gov. Josh Stein announced that American Eagle Outfitters Inc. is planning to invest $41 million in a new distribution hub in Rowan County, potentially creating more than 200 jobs. 

“American Eagle Outfitters will be a welcome addition to Rowan County,” said Stein in a press release. “As one of America’s top states for business year after year, North Carolina continues to offer the stable economy, skilled workforce, and business-friendly environment that growing companies need to thrive.”

According to the press release, the company operates stores in the United States, Canada, and Mexico, and through a worldwide network of license partners in over 30 countries. 

“North Carolina offers the workforce, infrastructure, and strategic location needed to continue powering our brands and connecting us to customers,” Jay Schottenstein, executive chairman of the board and chief executive officer of American Eagle Outfitters, said in a press release. “We’re proud to have a presence in Rowan County and are excited about what this facility means for the long-term growth of our supply chain and distribution network.”

A $150,000 One North Carolina Fund (OneNC) performance-based grant will be awarded to AE Regional Distribution to assist the company in locating to North Carolina, according to the press release. The OneNC Fund offers financial support to local governments to help recruit new businesses, encourage investment, and create jobs. Companies do not receive the money upfront and must meet job creation and investment targets to qualify for payments. AEO must create 70 jobs to receive OneNC grant payments.

“American Eagle Outfitters is a massive corporation with $5.5 billion in annual revenue,” Brian Balfour, VP of Research at the John Locke Foundation, told the Carolina Journal. “It’s absurd to think that a $150,000 government grant was needed to ensure they opened a distribution hub in Salisbury. That’s barely a rounding error in their bottom line. Our state already has one of the best business climates in the country; this grant is most likely just an excuse for Gov. Stein to issue a press release and try to take credit for this announcement. Whether the taxpayer handout is big or small, however, the principle remains the same: The government should not be in the business of taking money from hardworking North Carolinians and handing it to politically-connected corporations.”

While salaries will vary for more than 70 skilled labor positions, including management, maintenance, and operations, the average salary will be $57,351, on par with Rowan County’s average salary of $57,155, according to the press release. This could create an annual payroll impact of $4 million. 

Other key partners in this project, with the NC Dept of Commerce and the Economic Development Partnership of North Carolina, include the North Carolina General Assembly, Commerce’s Division of Workforce Solutions, the North Carolina Community College System, Rowan-Cabarrus Community College, Duke Energy, Rowan County, the Rowan Economic Development Council, and the City of Salisbury.

“American Eagle bring distribution hub to Rowan County” was originally published on www.carolinajournal.com.